4 Japan Banks to Start Talks on New Settlement System

Economy

Tokyo, Aug. 5 (Jiji Press)--Four major Japanese banks plan to start talks as early as this month to establish a new settlement system for small amounts of money in an effort to lower commission fees, informed sources said Wednesday.

MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank and Resona Bank hope that the envisioned new system will promote cashless payment services in the country with the participation of regional banks and smartphone-based settlement service providers.

The existing system for remittances between bank accounts, which uses the Zengin Data Telecommunication System, can handle the transfers of large sums of money and is very secure, but remittance fees are high.

The four banks are considering, among other options, utilizing the J-Debit debit card system as a basis for the planned new settlement scheme, which is expected to enable money transfers between friends and family members through smartphone apps, the sources said.

Details, including the upper limits on remittances and payments, will be discussed from now, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press